Vermilion puts income tax increase on ballot

VERMILION -- Voters will consider a half-percent income tax increase that would raise money to fix Vermilion's "deplorable" roads.

City Council, on Monday, voted 7-0 to put the issue on the ballot.

The money would be earmarked for repairs to streets and the tax increase only would apply to Vermilion residents who also work in the city, said Mayor Eileen Bulan and Council President John Gabriel.

The tax would raise an estimated $400,000 to $500,000 a year for repairs.

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"Those numbers are in a state of flux," Gabriel said, noting the city will lose jobs, because the ALCO department store has announced it will close.

Council's legislation noted the roadways are in rough shape.

"The deplorable condition of Vermilion's streets and roads affects the quality of life for all of its residents and negatively impacts the value of real estate, both residential and commercial," the legislation said.

Vermilion could use about $25 million in road repairs and the city falls behind about $1 million a year as the streets deteriorate, Gabriel said.

"We're way short on the actual money we need," he said.

The city had four plows, but one caught fire last year, and four road workers are responsible for maintaining some 70 miles of roads in the city, Gabriel said.

Meanwhile, the city gets about $225,000 a year in license plate fees to offset repair costs, he said.

"So there's a lot that needs done," Gabriel said. "We said this several years ago, we need money to keep pace with the amount of decay that's taking place in the roads. That hasn't changed."

Voters in November 2012 turned down a tax increase that was to raise money for the city's general fund.